Mortgages

[sophie_1003]

I'm currently a student at university but am thinking about the future and how I'm going to be able to get a mortgage and was just wondering- do student loan debts count in credit checks and how do I get a good credit rating (if this even has an effect on getting a mortgage?)

[barry1010]

Student loans do count - all credit counts.
You need to establish a credit history. Get a credit card and use it sparingly but regularly. Pay it off in full each month so you don't pay interest charges. This will show you can be trusted with credit.
Remember that a credit card gives you extra legal protection with your purchases over �100, so it is a good idea to use it for more expensive items.
Be sure to pay your bills on time, don't default on payments and you will be building up an excellent credit history for the future.

[sophie_1003]

Thankyou, have got a credit card for exactly that purpose but wasn't sure exactly how or if it worked that way! Will start using it as of tonight when I am hopefully buying a laptop! I just worry because as I am living at home I won't have any history of paying for electric, telephone, water bills etc and don't want to be in the situation where I can't get a mortgage!

[barry1010]

Many people move from their parents' home to their own mortgaged home without problem, so don't worry about that. A deposit will really help when the time comes, so try and save any spare cash, easier said than done when you are a student, I know.

[sophie_1003]

Indeed it is, but I am in the habit of saving already, although at the moment have much more short term orientations for doing so (want to go on holiday in the summer!) but think I'll have the will power to be able to budget and save sensibly when the time comes!

[ummmm]

Have you got a mobile phone contract?

[sophie_1003]

no, there's no point, I only top up �10 every couple of months!